ICICI Bank 2016 Annual Report Download - page 198

Annual Report 2015-2016196
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION
143 OF THE COMPANIES ACT, 2013 (‘THE ACT’)
1. In conjunction with our report of the consolidated nancial statements of ICICI Bank Limited, it’s subsidiary companies
and its associate companies (collectively referred to as “the Group”) as of and for the year ended 31 March 2016, we
have audited the internal nancial controls over nancial reporting of ICICI Bank Limited (hereinafter referred to as
‘the Holding Company’), its subsidiary companies and associate companies which are companies incorporated in
India, as of that date.
MANAGEMENT’S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
2. The respective Board of Directors of the Holding Company, its subsidiary companies and its associate companies,
which are companies incorporated in India, are responsible for establishing and maintaining internal nancial
controls based on the internal control over nancial reporting criteria established by the Group considering the
essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting (‘the Guidance Note’) issued by the Institute of Chartered Accountants of India (‘the ICAI’). These
responsibilities include the design, implementation and maintenance of adequate internal nancial controls that
were operating effectively for ensuring the orderly and efcient conduct of its business, including adherence to the
respective company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, and the timely preparation of reliable nancial information, as
required under the Companies Act, 2013.
AUDITOR’S RESPONSIBILITY
3. Our responsibility is to express an opinion on the Group’s internal nancial controls over nancial reporting based
on our audit. We conducted our audit in accordance with the Guidance Note issued by ICAI and the Standards on
Auditing (‘the Standards’), issued by the ICAI and deemed to be prescribed under section 143(10) of the Act, to the
extent applicable to an audit of internal nancial controls, both issued by the ICAI. Those Standards and the Guidance
Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether adequate internal nancial controls over nancial reporting was established and maintained and if
such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal nancial
controls system over nancial reporting and their operating effectiveness. Our audit of internal nancial controls
over nancial reporting included obtaining an understanding of internal nancial controls over nancial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness
of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material misstatement of the nancial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms
of their reports referred to in the Other Matters paragraph below, is sufcient and appropriate to provide a basis for
our audit opinion on the Group’s internal nancial controls system over nancial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
6. A company’s internal nancial control over nancial reporting is a process designed to provide reasonable assurance
regarding the reliability of nancial reporting and the preparation of nancial statements for external purposes in
accordance with generally accepted accounting principles. A company’s internal nancial control over nancial
reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reect the transactions and dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of nancial statements in
accordance with generally accepted accounting principles, and that receipts and expenditures of the company are
being made only in accordance with authorizations of management and directors of the company; and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the
company’s assets that could have a material effect on the nancial statements.
Annexure A
to the Independent Auditor’s Report of even date on the Consolidated Financial Statements of ICICI Bank Limited